General Regulation on the Violet Economy impulse Organic Law

On November 20, 2023, the Republic President issued the General Regulation on the Violet Economy Impulse Organic Law (hereby the “Regulation”) published on the Second Supplement of the Official Registry Nr. 444 on November 25, 2023. We highlight the following:

Equity Plans: Employers with 50 or more employees must elaborate, implement, and register their Equity Plans, according to the following conditions:

  1. Equity Plans minimum content: i) Company general data, ii) Inform containing the diagnosis outcome results, iii) Equity measures, priority, and term of execution, iv) Human and material resources, v) Implementation, follow-up, and evaluation schedule, and vi) Follow-up, evaluation, and revision system.
  2. The evaluation phase of the Equity Plans shall include quantitative and qualitative parameters on: i) The employer economic activity, operational years, number of employees (identifying their gender), ii) Hiring and selection process, iii) Training and education, iv) Rise and promotions, v) Administrative positions control (including gender equity control), vi) Salary equity, vii) Work environment conditions, schedules and benefits, viii) Exercise of personal, family and labor rights, ix) Female representation and participation on the work environment, and x) Harassment and discrimination prevention measures.
  3. The Equity Plans will be valid for 4 years and must be registered on the Labor Ministry.
  4. The Equity Plan must be physically and directly present to the Labor Ministry so long as a digital platform is stablished.

Sexual harassment in the workplace and prevention measures: The Regulation defines sexual harassment in the workplace, as occasional or repeated action whose purpose is to harm the sexual integrity of the employee. This type of harassment can occur during the working day, in work activities or because of these, whether by physical or digital means.

The following measures are established to prevent sexual harassment:

  1. Provide every year trainings on the importance of prevention and immediate action in cases of sexual harassment.
  2. Adapt the Internal Work Regulations to include mechanisms for preventing sexual harassment at work and including action plans to be taken.
  3. Develop protocols or procedures for the prevention and investigation of harassment, discrimination, and violence in accordance with the principles of i) Confidentiality, ii) Equality and non-discrimination, iii) Impartiality, iv) Non-revictimization, v) Non-retaliation against those who make complaints, vi) Pro human being, vii) Transversality and viii) Attention, protection and accompaniment.

Legal termination of the employment relationship (visto bueno) on grounds of harassment: The Regulation determines that the time for the prescription shall be counted from the moment the Employer has knowledge of the facts through its representative or highest authority.

The victim’s testimony may be presented orally or in writing but does not constitute sufficient evidence on its own. To safeguard contact between the offender and the victim, the Employer may temporarily relocate or separate the accused on paid leave, holiday, or temporary telecommuting.

Violet Seal: This is an optional certification that will be awarded by the Labor Ministry or by non-profit organization qualify to award this Seal. This certification implies a recognition for companies that stand out in the areas of equal treatment and opportunities at work.

Entities that meet the requirements for obtaining the Violet Seal must submit their application to the Labor Ministry, which will issue a report granting or denying within a maximum of 60 days. The ” Violet Seal” certificate will be valid for one year.

Verification of the percentages of inclusion on boards of directors: The Superintendency of Companies, Stock and Insurance will control that all entities have one female member for every three members on their Board of Directors until December 31, 2024.

Verificación de los porcentajes de inclusión en directorios: La Superintendencia de Compañías, Valores y Seguros controlará que hasta el 31 de diciembre de 2024 todas las sociedades cuenten con un miembro femenino en su Directorio por cada tres integrantes.

DISCLAIMER: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.